21 May 2018

401(k) Account Balances Reach New Highs in Q1

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401(k) Account Balances Reach New Highs in Q1 

According to research conducted by Fidelity Investments, individual account balances in 401(k) plans hit a record high $80,900 at the end of Q1 2013. This was due to additional employee and employer contributions coupled with strong returns in the equities market. The average balance in Q1 2013 represents an 8.4 percent increase over the same time period last year which had an average balance of $74,600.

Pre-Retirees, those employees over 55 who have been with the same employer for 10 or more years, showed strong growth over the past four years, with average account balances reaching $255,000, nearly double what it was for the same time period in 2009.

The research shows that pre-Retirees contributed to their 401(k) plans at an average of 10.3 percent of their salary in Q1 2013, a full two percentage points higher than the average of 8 percent for all workers. Combined with average employer contributions of 4.5 percent, and pre-retirees’ average contribution amount totals 14.8 percent.

 

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